Billionaire Stanley Druckenmiller’s Latest Stock Picks Include Google Inc (GOOG)

Page 1 of 2

We track 13F filings from hedge funds and other notable investors both to help us develop investment strategies- the most popular small cap stocks among hedge funds, which can be determined by pooling these filings, tend to outperform the S&P 500 by 18 percentage points per year- and simply as a source of stock picks for further analysis. Learn more about our small cap strategy. 13Fs are filed six to seven weeks after the end of a quarter and disclose many of an investor’s long equity positions as of the end of that quarter.

Billionaire Stanley Druckenmiller managed Duquesne Capital quite successfully for many years as well as served as a portfolio manager for George Soros. He now manages a family office under the Duquesne name; he is, therefore, still required to file 13Fs. We analyzed his filing for December 2012 and compared it to previous filings and here are some investment themes which we noticed:

DUQUESNE CAPITALSelling oil majors. In the third quarter of 2012 Druckenmiller had added Exxon Mobil Coporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) to his portfolio; in the subsequent three months he sold all his shares of these companies. These two oil majors are valued at 9 to 11 times consensus earnings for 2014, as the industry in general is trading at value multiples. Seeing as Druckenmiller dumped both stocks completely, as well as the fact that they as well as peer BP plc (NYSE:BP) would seem to be undervalued in the event of stable energy prices we would assume that he is bearish on oil and gas. An expectation of lower oil prices, in turn, might be based on a bearish attitude towards the global economy though of course there could be other causes. Exxon Mobil and BP had been among the most popular energy stocks among hedge funds in the third quarter (find more energy stocks hedge funds loved).

Out of favor stocks. American International Group, Inc. (NYSE:AIG), while one of the most popular stocks among hedge funds in the third quarter of 2012 (see the full top ten list), is still looked on with disfavor by many market players and currently trades at a P/B ratio of 0.6. Airlines, including US Airways Group, Inc. (NYSE:LCC), are generally thought of as terrible investments. Druckenmiller hadn’t owned shares of either company at the beginning of October, but by the end of 2012 both stocks were among his ten largest holdings by market value. AIG is up 42% in the last year, even though its valuation remains low in book or earnings terms (the forward P/E is 11). US Airways and the in-bankruptcy American Airlines have agreed to a merger (as had been speculated for months) though the transaction still must be reviewed by the federal government. As it stands US Airways trades at 5 times forward earnings estimates though of course adding American’s operations may be challenging for the bottom line at least in the short term.

Druckenmiller was buying shares of a major technology company:

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!